The Fifth Session of the Eleventh People’s Congress of Hunan Province
The Fourth Session of the Tenth Hunan Provincial Committee of the CPPCC

Delivered at the Fifth Session of the Eleventh People’s Congress of Hunan Province by Governor of Hunan Province Xu Shousheng

Fellow Deputies
On behalf of the Hunan Provincial People's Government, I now present to you my report on the work of the government for your deliberation and approval. I also welcome comments and suggestions on the report from the members of the Hunan Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) and other representatives present.

Report on the Work of the Hunan Provincial People's Government 2011

I. In 2010 and during the "Eleventh Five-Year" period the province actively responded to all challenges; as a result, it has achieved a sound economic and social development, bringing substantial benefits to its people.

Under the correct leadership of the Central Committee and the State Council, the whole province thoroughly implements the scientific concept of development, and in accordance with the deployment of CPC Hunan Provincial Committee, vigorously carries out the "One Industrialization and Three Basics" Strategy (i.e. the new-type industrialization and basic facilities, basic industries and basic work) and accelerates the new-type industrialization, new urbanization, agricultural modernization, informationization and construction of the "Two-oriented" Society. As a result, the province has triumphantly coped with the impact of the international financial crisis, as well as of natural disasters. Pulling together in time of difficulty and forging ahead with pioneering and innovating spirits, the province successfully fulfilled the objectives and tasks of the "Eleventh Five-Year Plan".

(1) Economic strength increased substantially. In 2010, the province's GDP exceeded 1.5 trillion (projected) yuan, and in per capita terms it reached 23,100 yuan, which was 2.3 and 2.2 times of that of 2005, making the average annual growth rate of the last five years 14% and 13.3% respectively. The total fiscal revenue reached 186.29 billion yuan, 2.5 times of that 2005, with an average annual growth rate of 20% for the last five years. The investment in fixed assets came to 982.11 billion yuan, 3.8 times of that of 2005. Saving deposits and loans balances in both local and foreign currencies in all financial institutions stood at 1.66 trillion yuan and 1.15 trillion yuan respectively, with an increase of 1.00368 trillion yuan and 736.25 billion yuan respectively in the last five years. Last year alone received 87.83 billion yuan of direct financing and established 12 new listed companies. The insurance industry also witnessed a robust development with a premium income of 43.29 billion yuan.

(2) Substantial progress was achieved in shift of growth pattern and in structure readjustment. The ratio between the primary, secondary and tertiary industries registered 13.8∶46.2∶40.The ratio of the secondary industry increased by 6.6 percentage points in the last five years. Both urban and rural areas enjoyed a steady development. In the last five years, a total of 19.78 billion yuan of subsidies for agricultural production has been issued. For 11 years in a row, a requisition-compensation balance has been achieved. The major project of Dongting Lake Rim Basic Farmland Construction kicked off. Grain output remained stable with 312 provincial leaders in industrialized operation of agriculture generating 190 billion yuan of sales income. The New Countryside Construction project "1000-Village Demonstration" pressed ahead. The coverage of centralized water supply in rural areas reached 35%, providing portable water to a rural population of 10.05 million in the last five years. The new type of industrialization was vigorously promoted. The program of readjusting and reviving key industries was implemented in-depth and the development of strategically important emergent industries was accelerated. The project of large aircraft landing gear and wheel system was located in Hunan. Changfeng together with Guangzhou Automobile and Mitsubishi launched an inter-regional strategic reorganization. Building materials, metallurgy and engineering machinery industries were three new members in the 100 billion yuan club. The industrial added value totaled over 600 billion yuan, 2.7 times of that of 2005, and its contribution rate to economic growth reached about 57%, in a breakdown, the added value of high-tech industry was 217 billion yuan and that of building industry was 103.8 billion yuan. The real estate industry maintained steady and rapid development while producer services enjoyed accelerated development with an added value of 280 billion yuan. The total revenue of tourism reached 142.58 billion yuan, equivalent to 9.5% of the provincial GDP. Non-public economy became even more vibrant with an added value of 850 billion yuan, accounting for 56.7% of the total GDP. The investment structure was improved: the ratio of investment in energy-intensive industries dropped 16.7 percentage points for the past five years. The stimulating effect of consumption on economic growth increased with total retail sales of consumer goods hitting 577.53 billion yuan. Independent innovation capacity was further improved, as demonstrated by solving 82 key industrial technologies and obtaining over 13,000patent licenses. Tianhe-1A super computer system was a telling example. The contribution rate of scientific and technological progress to economic growth reached as high as 51%.

(3) Development basis was comprehensively reinforced. Investment in infrastructure totaled 812.15 billion yuan during the "Eleventh Five-Year Plan" period, which was 3.4 times of that during the "Tenth Five-Year Plan". Transportation construction developed by leaps and bounds. With Wuhan-Guangzhou high-speed railway crossing the province, Hunan entered the era of high-speed railway. Expressway construction achieved a historic breakthrough as demonstrated by the following figures. In the last five years the total investment in this field stood at 151.5 billion yuan, which was 4.1 times of that during the "Tenth Five-Year Plan". Ten expressways opened to traffic 10, adding a mileage of 983 km and making the total of 2386 km. With these expressways, a "Four-hour Economic Circle" was taking shape, connecting the provincial capital Changsha with 13 cities and prefectures. 99.87% of towns and townships and 80.1% of administrative villages were connected with cement/asphalt roads. Another eight railway projects were under construction. Civil Aviation Transportation grew by 19% in the last five years. The total throughput of Huanghua Airport reached 12.62 million person times. Energy security was strengthened continuously. Power generation installed capacity reached 29.12 million kilowatts, a net increase of 14 million kilowatts compared with five years ago. Water conservancy construction also boasted a rapid development. The comprehensive treatment plan for Dongting Lake was launched. By far 634 large and medium-sized reservoirs and small key reservoirs that are precarious have been reinforced. Guangzhou Auto Fiat, Valin electrical steel, BYD Auto, Foton and other major industrial projects have kicked off. Major projects pressed ahead smoothly, to name but a few, Yueyang 10 million-ton oil refining and petrochemical integration, and Xiang Steel heavy plate and technological innovation. Effective protection was rendered to construction land, and geological and mining exploration has achieved positive results.

(4) The development of the pilot area for the "Two-oriented (resource conserving and environmentally friendly)" society in the Changsha-Zhuzhou-Xiangtan (hereinafter CZT for short) city cluster gives a boost to coordinated development among regions. Development of the pilot area has basically completed the tasks of its first phase. As a result, the whole province is now Two-oriented-minded and both the development momentum and the radiating effect of the pilot area are unprecedented. The development of the following projects has picked up: Changsha metro, CZT inter-city railway lines, Changsha-based Xiang River hydraulic engineering complex and Xiang River Scenic Belt. The "Triple Play" pilot project was launched; the Changsha-based National Center for Supercomputing and Aerospace Science and Technology City were under construction; all five major demonstration areas started up. CZT city cluster has become one of the eight major national comprehensive high-tech industry bases. Xiangtan Hi-tech Zone and Ningxiang Economic Development Zone were upgraded to national parks. The proportion of the economic aggregate of CZT city cluster to the whole province rose from 40.6% in 2005 to 43%. Development among regions remained in a coordinated manner.

(5) Environmental protection efforts were intensified continuously. The energy-saving and emission-reduction-related targets set in the "Eleventh Five-Year Plan" have all been fulfilled by implementing 785 key energy-saving projects. As a result, decontamination rate of urban sewage and domestic garbage reached 72% and 50.66% respectively. The disaster prevention and mitigation system of geological hazards continued to improve, and mining geological environment recovery was strengthened. Positive progress has been made in ecological construction, with forest coverage rate hitting 57.01%, and forest reserves amounting to 402 million cubic meters. Langshan was successfully included in the World Heritage List. The development of circular economy has been accelerated with a number of national and provincial circular economy pilot projectsachieving initial results. A number of major pollution prevention and treatment projects were carried out including Comprehensive Treatment of Dongting Lake and Heavy Metals Treatment along the Xiang River.

(6) Reform and Opening up program was proceeding in depth. A new round of reform in provincial and municipal governmental institutions has been completed. So have the tasks of initial phase of reform in state-owned enterprises (SOEs) by provincial oversight. The net assets of these enterprises increased by 2.1 times, reaching110.4 billion yuan. 223 cooperative projects were arranged with 68 centrally-administered SOEs. Significant progress has been made in the medical and health system reform, with national essential drug system well in place. Huarong Xiangjiang Bank was established by incorporating four banks and one urban credit cooperatives. Hunan United Assets and Equity Exchange were founded. The reform in cultural system went on further and deeper. The added value of this industry accounted for more than 5% of GDP. The reform in financial system was deepened as well. For example, the financial reform of "counties directly supervised by the province" officially kicked off. Pricing reform of resource products achieved results. The main task of reform in the collective forest right system was completed. The vitality of an export-oriented economy was strengthened. Strategic investors like Citibank, Dell and Foxconn were introduced. "Asia-Europe Center for Water Resources Research and Exploration" was located in Changsha. A port system was gradual improved. The number of entry-exits at air ports reached 562,000 person times. The province's import and export volume reached 14.69 billion U.S. dollars, with an average annual growth rate of 19.6% in the last five years. Actually utilized foreign investment reached 5.18 billion U.S. dollars, with an average annual growth rate of 20.1% in the last five years. The actually utilized domestic investment grew as well. The pace of "Going Global" accelerated as evidenced by the total overseas direct investment standing at 2.65 billion USD. Zoomlion Heavy Industry Science & Technology Development, Sany Heavy Industry, CSR Times, Valin Iron & Steel etc. are illustrative examples of transnational operation. Major economic and trading promotion activities like Hunan Week of Shanghai Expo and Taiwan-Hunan Week were successfully arranged. The economic ties with the Pan Pearl River Delta, Yangtze River Delta, and Central China were strengthened. Assistance and disaster relief efforts rendered to Tibet, Xin Jiang Sichuan and etc. were actively carried out.

(7) The development of Livelihood and social undertakings were accelerated. Living standards were steadily improved with per capita income of urban and rural residents reaching 16,566 yuan and 5,622 yuan respectively, with an average annual growth rate of 8.4% and 8.8% in the last five years. Throughout 2010, direct livelihood-related expenditures at all levels amounted to 172.35 billion yuan, an increase of 124.47 billion yuan from 2005. Proactive employment policies produced significant results. Last year, 708,000 more urban jobs were created and the registered urban unemployment rate was within 4.3%. 13.208 million migrant rural labors found jobs in urban areas and this part of income exceeded 120 billion yuan. The social security system was perfected in a speedy manner. The total number of pilot counties under the new rural social pension system increased to 46. The coverage of pension, unemployment, work injury and maternity insurance continued to expand. The insurance coverage rates of both urban and rural areas maintained above 90% (a basic medical insurance system for urban workers and residents and a New Rural Cooperative Medical System for rural residents). The subsidies for both systems were increased to 120 yuan/ person/year. Relief efforts were rendered to professional fishermen of the Dongting Lake and assistance was given to fishermen along the "Four Rivers" to help them settle ashore. Per capita make-up payment for urban and rural minimum allowance systems reached 155 yuan and 55 yuan respectively. The yearly subsidy allowance for decentralized and centralized support for social relief recipients arrived at 1239 yuan and 2942 yuan per person. The overall price level was stable thanks to timely initiation of a joint mechanism targeting at rising prices. Since last November, ad hoc subsidies have been issued to urban and rural poor people and college students from poor families . During the past five years, affordable housing was offered to 362,000 more households; shanty towns involving 106,000 households in cities or state-owned industrial/mining areas were renovated; additional 102,000 dilapidated buildings in rural areas were restored; 878,000 rooms were built to house 259,000 households stricken by disasters. The backbone of vocational education covering both urban and rural areas has taken a basic shape and the quality of higher education has been raised further. Medical and health service systems have also been optimized constantly as evidenced by timely and effective response to H1N1, human infection with highly pathogenic avian influenza and foot and mouth disease, and by new achievements made at prevention and control of infectious diseases and endemic. Production safety fared well with the incidence of serious accidents dropping significantly. People's physical fitness program was carried out in depth. The coverage of postal services expanded to rural areas rapidly. The sixth census produced major results for its initial stage. Administrative services rendered to industries and businesses and the market oversight capacity have both improved. Quality-oriented rejuvenation strategy and standardization strategy was proceeding with strong momentum. Population and family planning work scored remarkable results. New progress has been made in the following fields: ethnic and religious groups, Taiwan, foreign and overseas Chinese affairs, trade promotion, radio, film, and television, publishing, statistics, inspection and quarantine, food and drug supervision, air defense, counseling system, history, local history, archives, supply and marketing, migration and trade unions, Communist Youth League, protection for women, children, people with disabilities, and the elderly, earthquake, weather, mapping, security service, Red Cross and so on.

(8) Democratic and legal construction has made a major breakthrough. Under the supervision of Provincial People's Congress (PPC) and its Standing Committee, the provincial government conscientiously enforced the resolutions and decisions made by PPC and its Standing Committee. The government also accepted democratic supervision from the Provincial People's Political Consultative Committee (PPPCC), administrative and supervision, as well as supervision from the masses and media. Throughout last year, 1279 proposals put forward by PPC members and 775 proposals by PPPCC members have been processed. The government strengthened its legal system and submitted six local laws and three regulations to PPC. Administration by law was further boosted with administrative procedures and supporting documents implemented in depth. The Government also continued to strengthen its performance evaluation, with administrative efficiency and public service keeping improving. In the last five years, the provincial government streamlined 1011 administrative approval projects, thus making the streamline ratio as high as 58%. 154 administrative fees have been abolished and 46,000 regulatory documents were abolished or repealed. Decision-making has become even more scientific, democratic and in accordance with the law. The Advisory Committee made up of academicians and experts played an important role. Administrative power was further regulated. Disclosure of government affairs was further intensified and e-government construction speeded up. Grass-roots democracy was strengthened as demonstrated by smooth operation of direct election of village/residential committees. Government affairs disclosure and the democratic management system of village/residential committees have been improved constantly. works continuously improved. The tasks of the "Fifth Five-Year Legal Knowledge Dissemination" were successfully completed. The construction of urban and rural communities proceeded in an all-round manner, and social organizations developed in an orderly way.

(9) The construction of spiritual civilization was further promoted. The study and practice of the scientific concept of development and relevant performance-enhancing activities were carried out extendedly. Moral education and spiritual civilization based on the socialist core value system were strengthened, with in-depth activities arranged for ideological and political education for college students and minors spiritual civilization construction for the masses. The efforts to build a clean government were intensified and a number of major illegal and undisciplined cases have been seriously dealt with. The innovation of social management proceeded in an all-round manner. The capacity for integrated emergency rescue and emergency response was enhanced. Petition work and the comprehensive management of social security have been strengthened by cracking down on all kinds of crime in accordance with the law. therefore social harmony and stability was maintained.

Defense mobilization and reserve force building developed in an innovated manner. National defense mobilization was further consolidated and the overall capacity of reserve forces and militia for accomplishing diverse military tasks was improved. National defense education continued to be strengthened, and the integration of the military and civilians developed steadily, with harmonious relations between the military and the government and between the military and civilians. Hunan-based People's Liberation Army, armed police and militia actively supported local economic and social development, and contributed enormously to disaster relief, poor reduction and social stability.

Fellow deputies, the province has made impressive achievements and accumulated valuable experience in the last five years. The experiences include the following: always adhering to the scientific development, and creatively implementing the central policies while taking local characteristics into consideration; constantly improving the ability to turn crises into opportunities, striking a balance between economic growth, people's livelihood and stability and between speed, quality and effectiveness; always adhering to reform and opening up by enhancing the momentum and vitality of development and by building institutional mechanisms that promote scientific development; always adhering to a people-oriented approach with people's well-being as the fundamental purpose; always adhering to administration according to law, striving to create an open, fair, equitable and predictable environment for development; always relying on the solidarity of the whole province to form the synergy so as to pull together to overcome all difficulties.

Fellow deputies, the great economic and social achievements of the province are attributed to in the existing and previous party committee and provincial government and to the great efforts of all peoples in this province. Hereby on behalf of the Provincial People's Government, I would like to express my sincere gratitude to all the workers, peasants, cadres and intellectuals, to the members of democratic parties, federation of industry and commerce, personages without party affiliation, people's organizations and people from all walks of life, to Hunan-based PLA, the armed police officers and politics and law police officers, to Hunan-based units of the Central People's Government, to all compatriots of the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan and all the overseas Chinese and international friends.

Facing the new situation and new requirements, we feel the heavy responsibility, and are fully aware of existing problems. First, development falls short of the expectations of the people. Second, the extensive development pattern increasingly puts a bottleneck to energy and resources. The province is thus facing enormous pressure to achieve accelerating development while transforming development pattern. Third, the issues related to agriculture, farmers and rural areas are prominent; the driving forces of cities and industries is not strong enough, thus making coordinated development difficult. Fourth, the reform and opening program still has a uphill journey due to weak institutional mechanisms and small open economy. Fifth, guaranteeing and improving people's livelihood still pose severe challenges: people still find difficulties in education, employment, medical care, housing, pension and so on. Sixth, the transformation of government functions should be accelerated, and the work style of cadres should be improved. People and businesses show great concerns in matters of the development environment. The situation of safe production and maintenance of stability is still grim. We must take strong and effective measures to solve these problems.

II. The province should adhere to the approach of new-type industrialization, new urbanization, agricultural modernization, informationization and construction of the "Two-oriented" Society so as to fulfill all tasks set for this year and the "Twelfth Five-Year Plan".

In the next 5 years and more years to come, the province still embraces a period of strategically important opportunities. Looking at the world, peace, development and cooperation is still the trend of the times; the new technological revolution is in full swing; economic globalization entered a new phase of readjusting and deepening; the global restructuring and mobility of production factors are accelerating. We should remain cool-headed when it comes to trade protectionism, climate change, as well as global challenges like energy, resources and environment. We should accurately understand our position in the global division of labor and strive for greater market share by creatively participating in international economic cooperation and competition. China's economic strength has been increasing substantially, and accumulating successful stories of sound and rapid development as to make the people richer and the nation stronger. We should seize the opportunities brought out by the national strategy of promoting the rise-up of the central region so as to stand out in a new round of domestic competition. As to Hunan, the strategy of "One Industrialization and Three Basics" has scored great success, as demonstrated by accomplishing a number of major issues, practical matters and difficult problems. The economic strength is increasing rapidly; the upgrading of industrial structure is accelerating; the leeway to deal with complex situations and promote economic transition is also expanding by large margin; the strategic strength of competition in the future is accumulating. At the critical juncture of deepening reform and opening up, accelerating the transformation of economic development pattern, and building a well-off society in an all-round way, we must cherish opportunities, seize opportunities, and make good use of opportunities. We should also identify challenges, stand up to challenges, and overcome challenges. With a strong sense of dedication and responsibility we should energetically make fresh progress in the "Twelfth Five-Year Plan" Period.

Based on the goal of promoting sound and fast development, we prepared the "Outline of Twelfth Five-Year Plan" (draft)" by thoroughly implementing the spirit of the party's Fifth Plenary Session of the Seventeenth Central Committee of the CPC and the "Proposals for Twelfth Five-Year Plan" by Central Committee and Hunan Provincial Committee and by giving due consideration to the development needs of our province, pooling public opinion and wisdom and gathering consensus. Taking the theme on scientific development, taking the main line as accelerating the transformation of economic development pattern, closely revolving on the topics of scientific development, and enriching the people and strengthening the province, the "Outline" paints a blueprint for the Twelfth Five-Year Plan. The general requirements for this period are as follows: holding high the banner of scientific development, adhering to the road of new-type industrialization, new urbanization, agricultural modernization, informationization and construction of the "Two-oriented" Society, building a province that is innovative, digital-based, green and ruled by law so as to lay a decisive foundation of a well-off society. The main targets for the Twelfth Five-Year include: average annual GDP growth above 10%, which means reaching 2.5 trillion yuan in 2015; average annual revenue growth over 10%; average annual growth of fixed asset investment exceeding 20%; accomplishing the tasks assigned by the State in terms of energy conservation and emission reduction; average annual growth in per capita income of urban and rural residents; the registered urban unemployment rate below 5%; population natural growth rate less than 7 ‰. To fulfill these tasks, the following five types of development should be adhered.

First, optimized development. Development is the key to solving all problems of our province. We will strive for more comprehensive, coordinated and inclusive development by promoting the dynamic balance of demand and supply, coordinating the primary industry, the secondary industry and the tertiary industry, and encouraging all economic sectors to coexist in a win-win mode as they complement with each other.

Second, innovated development. The new-type industrialization represents the primary driving force of developing in scientific way, enriching the people and strengthening the province. It is also the top priority of all tasks, among which new urbanization, agricultural modernization, informationization and construction of the "Two-oriented" Society. We should press ahead with institutional, management and technological innovation, and give full play to science and technology as the first productivity and talented people as the primary resource to speed up our development transition.

Third, green development. We should be low-carbon and circular development-minded, and create energy conserving and environment-friendly industry structure, lifestyle and consumption mode, so as to make sure that the people have access to clean water, fresh air and safe food.

Fourth, people-oriented development. We will improve long-term mechanisms to provide people with a better life. For instance, we will continue to improve the security system covering both urban and rural areas, and we will increase their income in diversified ways and channals so that they can live a happier life.

Fifth, harmonious development. We aim for harmonious coexistence between people, between man and society and between man and nature by expediting the construction of a harmonious society, strengthening democracy and rule of law, safeguarding equity and justice and improving long-term mechanisms for allocating interests and solving disputes.

For the fulfillment of the objectives and tasks set in the "Twelfth Five-Year-Plan", we must do a good job in 2011 to make a sound start. Our targets this year are: 10% or more increase in GDP, 12% rise in fiscal revenue, 20% growth for investment in fixed assets or more, accomplishment of the national emission reduction target, about 4% for CPI hikes, 10% growth of per capita income for both urban and rural areas, and less than 4.5% of registered urban unemployment rate.

We will spare no efforts to do a good job in these ten areas:
(1) Pushing forward the new-type industrialization, and establishing Hunan Province as innovation-oriented
Traditional industries should be upgraded. We should make active efforts to consolidate and expand market shares of traditional industries which are in conformity with the national energy-saving and emission-reduction requirements and which are marketable, sizable and profitable, and can bring about substantial benefits to the people. We need to apply hi- and new technologies to upgrade those industries to achieve intelligent, integrated and internet-based production. Moreover, we need to expand equipment manufacturing to include such value-adding procedures as R&D, design, brand and service, and adopt more advanced technologies to make raw material industries more intensive, cleaner and circular, including iron and steel, nonferrous metals, petrochemicals, and building materials. And we should also strive for deeper processing and greater added value for industries like food processing, garments and textile, and special light industries to realize a gradual shift from quantity expansion to quality enhancement, and from primary products to processed products.

Strategic new industries should be cultivated. When it comes to development, priorities should be given to areas with a sound foundation, comparative advantages, and great potential to develop well, preferably within these seven industries: equipment manufacturing, new materials, cultural and creative industry, biology, new energy, IT, and energy conservation and environment protection. Vigorous efforts should be made for the five basic tasks: new industry clusters development, incubation of competitive enterprises, R&D of core technologies, creation of brands, human resource development, and on developing three supporting platforms including those for technological innovation, investment and financing services, and common technical services. We should formulate further policies to support crucial technologies and key products development, such as modern construction machinery, rail transportation equipment, composite structures, new energy vehicles, battery and related materials, smart grid, bio-breeding, foster competitive companies which are market oriented, equipped with edge-cutting technologies, innovation minded and flexible, and push forward a number of key projects which serve both military and civil purposes. These measures will put us on a fast track towards development led by technology and driven by innovation.
Efforts should be made to develop industrial clusters. We should continue to press ahead with the "Four 100-Billion-Yuan Output Projects", namely, developing industries with over 100 billion yuan assets, such as machinery and nonferrous metals industry, companies with over 100 billion yuan assets including Zoomlion, Sany Heavy Industry, Valin Iron & Steel, and Hunan Nonferrous Metals Holding Group and industrial clusters with over 100 billion yuan assets including construction engineering, auto and spare parts and petro chemicals with a view to establishing industrial bases up to national or even international advanced standards. With the principles of intensive use of land, environment protection, and concentrated location, industries are encouraged to agglomerate in industrial parks, and the phenomenon "an industrial park in each town, a factory in each village" should be avoided. We will pace up to build an industrial park network focused on provincial parks and supported by those at city or prefecture levels, with an emphasis on national parks including Changsha, Zhuzhou, Xiangtan Hi-tech Park and Yueyang, Changde, Ningxiang Economic Development Park, and the Chenzhou Export Processing Park.

Strengthen the capacity of independent innovation. Efforts should be accelerated to create an independent innovation system where enterprises as the main parties responsible are market oriented, supported by major innovation platforms and by an integration of production, teaching, research and application. We will step up integration of scientific and technological resources by combining key industrial parks, institutions of higher education and scientific research, and enterprises. We will speed up the establishment of laboratories of national, provincial or ministerial level, corporation R&D centers, engineering research centers, and postdoctoral work stations, and the founding of a strategic association for industrial technological innovation comprising a number of research results application bases and incubators for technology-based enterprises. We will concentrate our efforts on key technological projects, and choose from them some urgently needed, well grounded ones with great boost to other projects for the early development of high end products with independent IPR. We will improve the supporting investment and financing system by increasing government funding on applied research, encouraging large enterprises to spend more on R&D, facilitating integration of capital and innovation factors, and developing Technology factor markets, and intermediaries. We will also deepen the reform on science and technological system, including measures to encourage innovation and protect research results, improve assessment and awarding rules, and encourage companies and researchers to participate in the distribution based on their non-monetary capital like technologies, patents and trademarks. We will implement the intellectual property strategy with the goal of greater IPR creativeness, application and management.
We will give full play to the role of companies and entrepreneurs in the new-type industrialization. We aim for common and coordinated development of large companies and small and medium-sized ones (SMEs) by going on with the "Little Giant" Plan, the Innovation Program and talents-nurturing project. We will vigorously foster elite entrepreneurs, advocate brevity, experiment and entrepreneurship and create a favorable environment for business people.

(2) Promoting modern agriculture and accelerating the construction of new countryside
We will step up modern agricultural development. We will further stabilize grain production, implement earnestly national plans on newly added food production capacity, promote the "Planting Three to Yield Four" Super Hybrid Rice High-yielding Project to spread super rice and high-quality rice, resolutely curb farm land abandonment, and expand double cropping acreage for the mass production of grain so that we will continue to contribute to national food security. We will strictly implement national land protection policies, establish permanent farmland, improve land quality, and press ahead with comprehensive improvement of rural land, including projects to improve the Dongting Lake Rim basic farmland and the Cengtianhe land reserve development. We need to pay close attention to agricultural infrastructure construction with the focus on water conservancy, including the comprehensive treatment of the Dongting Lake, the four main rivers of Hunan Province (i.e., the Xiangjiang River, the Zijiang River, the Yuanjiang River and the Lishui River) and other smaller rivers, improvement of facilities in large and medium irrigation areas, reinforcement of dilapidated small reservoirs, dredging and expansion of backbone ponds, and building of small and micro water conservancy facilities. We shall step up efforts to build a modern agricultural system with an advantageous produce chain covering "double-low" rapeseed, high-quality cotton, ramie, oil-tea camellia, tea, edible fungus, flowers, fruit, livestock, bamboo, fresh agricultural products. We shall protect the supply of major agricultural produce such as vegetables and pigs by expanding the scale of vegetable bases and promoting large-scale pig farming. We have to work hard to make agriculture large scale in operation, standardized in operation and brand oriented in development, build an industrial chain which allows all parties concerned get interconnected and share both benefits and risks, give priority to a number of enterprises which boast solid foundations and give strong impetus to other agricultural products processing, implement projects to help develop deep grain processing and logistics which boast over 100 billion yuan assets, and do a good job in building agricultural products processing parks. We should improve the social service system for agriculture: actively carry out public services including agricultural products circulation, agricultural facilities-related services, agricultural technology innovation and spreading, animal and plant disease prevention and control, quality inspection and certification of agricultural products and agricultural information publication, and boost the R&D of quality seeds and seedlings. We will strive for equipment and machinery based agriculture by improving agriculture facilities; do a good job in urban construction of demonstration counties of modern agriculture; make peasants more organized by supporting all kinds of farmer cooperative organizations.

We will accelerate the construction of the new countryside and coordinate urban and rural development. Fiscal spending should give priority to agriculture, rural areas and farmers to the extent that the total spending on rural areas and agriculture grows faster and takes a larger share of total government spending compared with last year. We will accelerate the building of the new countryside by formulating a scientific and rational planning of towns and villages to manage the "field, water, roads, woods and villages" comprehensively, and by strengthening the construction, rectification, maintenance and management of rural roads, safe drinking water, power grids, communications, information, biogas and other infrastructure and renovating the rural dilapidated houses. We will make focused efforts to improve rural living environment, control point source pollution in rural areas, promote the comprehensive improvement of rural environment, and implement rural sanitation projects to support qualified areas to construct garbage and sewage treatment facilities. We should coordinate urban and rural development in an differentiated manner with a few foci: promoting integration of urban and rural planning, industries, infrastructure, employment, environmental protection and public services; boosting the combination of urban capital and technology with rural resources; carrying out extensively "Cooperation Between 10,000 Enterprises and Villages" for the integrated and complementary development of urban and rural areas. We will enhance the quality of education for farmers, among which the rural compulsory education, to a more balanced level, and accelerate the popularization of free secondary vocational education in rural areas. We will also strengthen the construction of the three-tier rural health care network, and improve the rural pension, subsistence allowances, "five guarantees" (providing food, clothing, medical care, housing and burial expenses for childless and infirm rural residents) and other relief and assistance systems.

We will do more to increase farmers' income. We should earnestly protect the pricing system of agricultural products and encourage farmers to optimize the planting and breeding structure and develop cottage industries, processing industries, and featured high-efficiency agriculture, so that they can earn more operational income. More efforts should be made to train new farmers, and encourage them to work for the secondary and tertiary industries in towns and cities and migrant workers to return home to start business, so that their wage income will increase. We will strengthen supervision and management of burden on peasants and ensure that favorable agricultural policies are implemented to increase their transfer and property incomes.

We will improve the institutional mechanisms for rural development. We shall further the comprehensive rural reform and speed up the establishment of institutional mechanisms that are conducive to facilitating modern agricultural development and increasing farmers' income. We will adhere to the basic rural operation system, stabilize the rural land contract relations, and steadily push forward the rural land circulation by means of a mutually beneficial long-term mechanism for both parties of the land transfer according to law and on voluntary and compensatory basis. We will deepen the reform of rural credit cooperatives, actively set up rural commercial banks, accelerate rural bank reform, and improve the agricultural insurance system to ensure that rural deposits are mainly used for agriculture and rural development. We shall comprehensively promote reforms of town institutions, rural financial management, and forest tenure reform of collective forests and state-owned forests, and speed up land requisition system reform to protect the legal rights of land-lost farmers.

(3) We should promote new urbanization and balanced regional development.
A brand new type of urbanization, with the city group as the body and small and middle-sized cities as the focus, characterized by balanced development between cities and towns of all sizes and levels, must be in place, so the provincial government must be committed to promoting balanced development between urban and rural areas and intensive development, giving full play to large cities the engines of the development and scientific planning. The city group of Changsha, Xiangtan and Zhuzhou will be expanded through speeding up the construction of inter-city railways, for a more balanced, efficient, intensive, harmonious and livable modern city circle. Border cities like Yueyang, Changde, Huaihua, Yongzhou and Chenzhou, for their geographic importance, will be elevated as priorities to enhance their capabilities of combining the resources and driving the regional economic development. A batch of small and middle-sized cities, county towns and important towns, will be listed as key cities or towns of high-quality, adequate-function and unique features, through improving city construction and management. City planning will be enhanced to meet higher standards; improved urban communication network and other infrastructures like sewerage, water and electricity supply, telecommunication and so on will boost industrial development and employment. Urban management will be improved; city assets must serve the development to the utmost, and the construction and management of public facilities must be creative and efficient. Nurturing urban culture is also on the top of the agenda; cities should pursue unique cultures, promote city images and identities, increase the civil awareness of the citizens, further open to the outside and adopt advanced urban management solutions to institutionally guarantee that the migrant workers can share the fruits and social welfares of the development on an equal footing with city dwellers.

We should promote the balanced development in regions bordering the city group of Changsha, Zhuzhou and Xiangtan, the south of Hunan and the west of Hunan. The strategy of advancing regional development, the development of key regions and the work of poverty-relief must be integrated, to draw strength from different areas and achieve mutual development. The relatively developed regions of Changsha, Zhuzhou and Xiangtan, as the development engine of the province, should step up cooperation and coordination with neighboring regions and lead the development of Hunan. The south of Hunan should be encouraged to accelerate opening-up and prioritize competitive industries like processing trade especially intensive processing and processing of produces to give full play to their advantageous geography of being near to Hong Kong and Macao. The provincial government should highlight the development of the west of Hunan; another round of development must be carried out, and the capability of independent development must be enhanced, and more poverty-relief planning should be implemented, as Xiangxi Autonomous Prefecture of the west of Hunan is the front of the provincial Anti-poverty campaign. For instance, we should step up the development of the Economic Cooperation area of Wuyi Mountain and other remote regions plagued by poverty and backwardness or dwelled by people of ethnic groups. Input for poverty-relief must be increased and innovative mechanism must be put forward, and the system of basic subsistence allowance system for rural residents and the poverty-combating policies must be combined to avoid patchy and unsustainable poverty-alleviation and eliminate absolute poverty. The construction of main function regions must be accelerated, and the development intensity must be controlled, the development procedures must be followed and discussion of the framework for regional development of different management and wealth distribution must be held.

(4) We should step up IT industries to build a digitalized province.
We must accelerate the development of the infrastructure of information network, which accommodates the need of economic and social development. The new network will be expanded to the rural areas, for the broadband is to be easily accessible for every village. The city group of Changsha, Zhuzhou and Xiangtan will be connected wirelessly soon. Platforms like information center of rural regions, Hunan databank of natural disasters, Changsha Super Computing center and so on will be built as pivot to channel and distribute information and also improve the information infrastructure. And "The integration of three networks" must be steadily implemented in Changsha, Zhuzhou and Xiangtan, for resource-sharing and seamless connection. Information security must reinforced; the mechanism of monitoring and pre-warning as well as crisis and emergency response must be improved to ensure the security of the basic and important information networks.

The development of IT industry will receive much support. The government will help the upgrading and expanding of IT industry to achieve higher-end, better-quality and more efficient development. Industrial clusters of certain influence like R&D and manufacturing centers of IT products, like software and digital and audio-visual products and so on will be high on the list. The research and development and application of new technologies like the Internet of things, cloud-computing and so on will be intensified, for more R&D centers for them are in the pipeline. Mobile e-business, cyber economy, industry of digital content and outsourcing will be highlighted.
The informationization level of economy will be increased. The government will strive for a deeper integration of informationization and industrialization, thorough promoting information reform in traditional industries like equipment manufacturing, iron and steel smelting, metallurgy and so on and applying IT to agriculture as well as in governing, business, producing, daily life, social management and other sectors, to build a digitalized provincial geographic system and speed up the construction of the system of public security and electronic control and monitoring system of roads in rural and urban areas. The construction of eleven provincial pilot regions for "the integration of informationization and industrialization" and the city group of Changsha, Zhuzhou and Xiangtan must be accelerated. The informationization of enterprises also known as " the project of leapfrogging" must be speeded up to promote the informationization in R&D, the intelligentization of producing, the digitalization of manufacturing equipments and the networking of management. The informationization of social causes must on the fast track too; information system for health and education are the key projects for sharing the vital resources and the intelligentizing the management of important sectors.

(5) To Accelerat the Construction of "Two-Oriented Society (Resource-saving and Environmentally Friendly)", and Build a Green Hunan
Step up the second stage of the construction of Changsha-Zhuzhou-Xiangtan Pilot Area (hereinafter referred to as CZT pilot area). Take the comprehensive treatment and protection of the Xiangjiang River Basin as the breakthrough, explore and establish the policy framework and the industry system of the "Two-oriented Society" construction, as well as the developing system of new industrialization and new urbanization. Put the emphasis on projects construction, promote the integration of project management and system construction, and focus on the implementation of "the Eight Projects", including the boost of "Two-oriented" industries, the infrastructure construction, the full coverage of energy saving and emission reduction, the comprehensive treatment of the Xiangjiang River Basin, the promotion of demonstration regions construction, the coordination demonstration of urban and rural areas, the integration of comprehensive transportation, and "the integration of three networks". Set up the "Two-oriented" industrial fund, and accelerate the promotion of pilot reforms of the smart grid and others. Continue to increase the fund input into the infrastructure construction in the demonstration areas, and promote the leading "Two-oriented" industries of the demonstration areas to large scale and high level. Promulgate the implementation plan and general program for the reform of eighteen regions of demonstration areas. Complete the planning formulation of protecting the Water Temple Reservoir Basin. Promulgate the general plan and a batch of special programs for Zhaoshan ecological green-heart area.

Continue to promote the energy saving and emission reduction. Resolutely eliminate the backward production capacity and concentrate on the demonstration projects of energy saving and emission reduction. Carry out the energy saving assessment and review mechanism of the fixed-asset investment projects. Comprehensively implement the "Tens of Thousands of Enterprises' Energy-saving Movement"; vigorously develop the green buildings, boost lawfully the energy saving in the construction field, transportation field, commercial and civil field. Expand the recycling economy, explore different economic development modes of areas, enterprises, and parks, attach importance to the construction of demonstration bases in Miluo city, Yongxin city, Chang Shuipu of Yiyang city and so on, step up the construction of national recycling economy experimental unit. Devote great efforts to developing green economy, strengthen the research and development of the green technologies like low-carbon, cleaner production, energy-efficient, and pollution control mechanisms. Set out and build the green economic demonstration areas, and actively promote the green consumption mode. Improve the policy system of development and security system with paid use of resources, compensation for ecological environment, green GDP assessment as its important parts, set up the price and compensation mechanism which will promote the energy-saving and emission reduction, advance emission trading of the major pollutant and the establishment of the eco-compensation pilot areas.

More efforts will be made into environmental protection and ecological harmony. Accelerate the construction of the ecologically secure shelters, with Dongting Lake, Wulin-Xuefeng mountains, Nanling mountains, Mufu-Luoxiao mountains, and "Four streams"(including the Xiangjiang River, the Zishui River, the Yuanjiang River, and the Lishui River) as its main part, with main transpoatation lines and green lines water lines as its arteries and veins, with the development of green towns as its focus. Grasp the chance that Hunan is appointed as the pilot province of water conservancy reform, expedite the process of water conservancy reform, carry out the managerial system of water resource with much strictness, and strengthen the water conservation of Donting Lake and the"Four Steams" basin as well as the comprehensive treatment of water environment; with Qingshui Tang, Zufu Gang, and Shuikou Shan as the focus of industrial and mining area, comprehensive treatment on heavy mental pollution will be put into practice; efforts on the comprehensive treatment of the Huayuan "Manganese Triangle" will be strengthened. The industrial pollutant discharge will be strictly controlled within the index of national standards; launch and implement the plan of eliminating the industries with heavy pollution; reinforce the construction and operational management of the facilities disposing the town sewage, household garbage, and solid waste. Great efforts will be made into the ecological protection of the headwaters of the rivers, the protection and construction of the key eco-function areas and the maintenance of the biodiversity. Improve the ability to predict and lessen the damage of the disasters and the ability to response to the climatic change. The protective and controlling system against alien pests will be put into practice. Make overall plan to carry out the large-scale ecological restoration and construction projects, implement the projects for prevention of the geologic hazard and protection of the geologic environment, handle spots with potential large-scale and oversize geologic hazard group after group at different time, and attach importance to the environmental restoration of the key mineral geologic environment and the treatment of the tailings. Efforts on treating the water loss and soil erosion will be reinforced, the achievement on returning land for farming to forestry will be consolidated, energy on forest conservation and forest planting will be increased continuously, therefore, a batch of " eco-livable city", "eco-livable town", and "eco-livable village" will be achieved.

(6) To Deepen Reform and Opening-up, and Accelerat the Establishment of Systems and Mechanisms Conductive to Scientific Development
Improve the systems and mechanisms conductive to the transformation and development. Straighten out the financial distribution system, improve the financial transfer payment system; continue to promote the financial reform of "direct provincial supervision of county finance", and strengthen the financial security capacity of the counties, less developed regions and eco-functional regions; set up the financial management mechanism with criterion, transparence, and high efficiency, deepen the reform on the budget system, administration of the national treasury, and government procurement, improve the debt management of the local government, practically guard against the risk, and establish the administrative mechanism supervising the whole process of public asset allocation, application, and disposition. Financial resources and tax resources will be fostered and expanded, tax collection and management will be improved, and the reform on the management of the non-taxable income will be promoted. Intensify the reform on the investment structure, and carry out the franchising system, the construction agent system, the post-evaluation system, and the system of accountability. Deepen the financial reform and innovation, cultivate the local small and medium financial institutions, quicken the process of establishing the CZT co-construction regional financial center, and figure out the ways to establish the financial holding companies which belong to the Hunan province. Set up the regional insurance legal institution, intensify the price reform, straighten out the price relationship of the resource products, improve the formation mechanism of important commodities, services, and factor prices, advance the reform of taxation expenses in the monopolized industries and of the resource and environmental taxation, and accelerate the establishment of the price formation mechanism, which will reflect the relation between supply and demand in the market, the degree of resources scarcity, and the environmental damage cost. Expedite the establishment of the pilot direct power purchase spots for large power end-users.

Enhance the competitiveness of the state-owned economy. Continue to promote the adjustment of the strategic layout of the state-owned economy, perfect the mechanism to ensure rational distribution of state funds by increasing investment in some areas and pulling it out of others, and speed up the implementation of diversified ownership. Standardize the reorganization and disposal of state assets, improve the corporate governance, and strengthen the government capital's operating budget, the income apportionment, salary incentive system and the financial risk supervisory system.

Great efforts should be made into the development of the non-public sector of the economy and county economy. Guide and accelerate the development of the non-public sector of the economy, intensify the policy support for independent innovation, product up-grading, merging and reorganization, enterprises' reconstruction, endeavor to build an institutional environment where economies of all kinds of ownership will be entitled to use the agents of production according to the law, participate the market competition fairly, and be protected equally by the law. Attention must be paid to the development of the county economy, the county's distinctive products based on its resources, and the county's cornerstone industries and key enterprises; with the park as the carrier, supporting industries and enterprises will be developed greatly, thus increase the county's bearing and absorptive capacity. Encourage all the people to start their own undertaking, enforce the cultivation of the entrepreneurial culture, arouse the society's entrepreneurial passion, strengthen the services on the field of entrepreneurial base training, loan guarantee, credit mortgage, financial support, and industry access, support the establishment of the intermediary about the innovation services, and set up a series of undertaking bases and innovation platform.
Importance will be attached to the development of the open economy. The total imports and exports are expected to reach 16.5 billion dollars, the actual utilization of foreign capital will reach 10 billion dollars, and the availability ratio of the domestic-investment will be increased. The development pattern of the foreign trade will be transformed, the structure of the import and export market and the structure of the products will be optimized, the output of the traditional advantageous products, high-tech products, and high value-added products will be expanded, the leading industries, foreign trade industries, and export bands possessing international competitiveness will be cultivated with great efforts, and imports on the key facility, technology and important resources will be encouraged. Develop the processing trade and service trade, promote the processing trade into intensive high-end links, and cultivate the key service outsourcing enterprises with international qualification, while attaching importance on the building of the CZT service outsourcing base. Actively carry on the industrial transfer, strengthen the construction of all kinds of accepting bases and platforms, pay attention to the accepting capitals and technology-intensive industries, the key links of the accepting industrial chain and the core projects of the value chain. Innovate the pattern of inviting overseas investment, vigorously bring in strategic investors, place emphasis on the introduction of headquarters and research centers of large scale industries home and abroad, and increase the availability ratio of capitals, operation ratio of projects, and the production ratio. Efficiency of the ports' customs clearance will be improved, construction of the electronic ports' physical platform will be accelerated, and the function of Hunan's international commercial electronic platform will be promoted. Carry out the "Going-out" strategy with great efforts, insist on the market orientation and entrepreneur's independent decision-making right, guide the competitive entrepreneurs to selectively take part in the cross-border M&A, overseas project contracting and international labor cooperation, launch overseas mergers and acquisition of the energy resources and investment cooperation, and build the resource bases, such as Australian-Hunan ironstone, Congo Cobalt, and Zambia copper mine. Deepen the cooperation among the regional economies, and intensify the economic and trade contacts between Hunan and Taiwan.

(7) To Enlarge Investment and Consumption, and Support Development by Major Projects
Construction of major industry projects will be emphasized. Great efforts will be made into implement of the engineering plant upgrading, development of the whole and spare-parts automobile industry, cluster innovation of the rail transportation equipment, promotion of the thirty-eight major projects, such as the information industry, culture industry, tourism industry, and the agricultural products bases. Importance will be attached to construction of industrial parks, such as Changsha aerospace, Zhuzhou railway, Xiangtan wind-powered electricity generation, Foxconn industrial city in Hengyang, Yiyang shipbuilding, Delta electronic industrial park in Chenzhou, Xiangxi-Guangzhou industrial park. Industry cluster, like the iron and steel industry over 100 billion yuan in Xiangtan and Loudi, the tobacco industry over 100 billion yuan in Changde, and the non-ferrous metal industry in Chenzhou, will be cultivated with attention. The production base, like Hengyang UHV transmission industry, and Yueyang petrochemical industry, will be accelerated. Speed up the development of a bunch of provincial physical distribution parks, such as Jinxia park in Changsha, Chenglinji park in Yueyang, Shifeng park in Zhuzhou, Jiuhua park in Xiangtan, and Deshan park in Changde.

Infrastructure projects construction will be enforced. Importance will be attached to the twenty-four major projects, such as construction of highway, railway corridor, hydro-junction, urban road network, and industrial parks, while a bunch of important projects will be planned and constructed. In the field of energy, the construction, reorganization and expansion of Huayang Yueyang power plant, state power plant of Baoqin, Datanghua plant in Yinyou county will be accelerated; comprehensive utilization of stone coal will be improved; strive to launch the construction of centrum Taohua Jiang nuclear power plant; boost construction of a bunch of biomass and wind power generation projects. Promote the preliminary work of constructing UHV transmission channel and smart grid; speed up the pace of transforming and upgrading the rural power grid; perfect the main grid over 220 KV, and accelerate the construction of the main transmission ring over 500 KV in Hunan. In the field of transportation, expedite the construction of Hu-Kung passenger dedicated line in Human province, promote the expansion projects of Zhiyang-Liuzhou railway, Hunan-Guangxi railway, Loudi-Shaoyang railway, and Shimen-Changsha railway, and launch the construction of Jinzhou-Yueyang railway, Huaihua-Shaoyang-Hengyang railway, Qinjiang-Zhangjiajie-Changde railway, Changde-Yueyang-Jiujiang railway, and Yueyang-Jishou railway; accelerate the highway construction of Erguang, Baomao, Hangrui, and Xiarong in Hunan province, expedite the construction of joint lines like inter-provincial roads, provincial roads, key ports, and transportation junctions.; boost the projects of Xiangjiang integrated junction in Changsha, Xiangjiang Tugutang navigation power junction, accelerate the construction of Xiangjiang waterway over 2,000 ton, and launch the preliminary work of Yueyang Chenglinji integrated junction; complete the reorganization and expansion of Changhsha Huanghua international airport, Zhangjiajie Hehua airport, the existing regional airports, and build a bunch of new airports; priority will be attached to the development of the urban public transport, and speed up the first stage construction of Changsha track traffic line one and line two. In the field of water conservancy, the construction of key water resource projects in He Xianguan, Lingling district, Yongzhou city and Quanmu tang, Xinning county, Shaoyang city; the water conservancy project in Qintianhe river will be launched, while the preliminary work of constructing large reservoirs in Jin tangchong, Yi chongqiao, and Mangshan will be accelerated; improve the building of flood storage and detention basin in Tongting lake will be promoted; carry out the special comprehensive treatment of draught trace in Hengyang-Shaoyang; the urban flood control and disaster reduction projects will be continued , and the construction of flood control embankment in fifty-two counties (cities, districts) will be expedited. Speed up the twenty-one major projects about industrial energy efficiency and ecological environmental protection.

Enhance management and supervision of the key projects construction. Consistent emphasis should be laid on the efforts, guarantee, and management of the key projects, and the working mechanism of the key projects construction should be improved. To enhance the performance evaluation of the key projects construction, the designated team should be established in cities, prefectures and departments for the projects included in the provincial "Twelfth Five-year Plan" key projects catalogue. We will give full play to the functions of projects supervision and management, audit, inspection, etc., enhance the supervision, management and inspection of the key projects to ensure the progress, quality and safety of the projects, and make sure that the projects should stand the test of history and people. The management systems of project corporation accountability, project fund, project bidding, project supervision and management will be strictly implemented. the demolition, relocation, and compensation work resulted from land expropriation will be conscientiously carry out so as to practically safeguard the legal rights and interests of the people.

Establish long-term benefit-oriented mechanism to expand consumption. We will promote consumption stability to boost economy growth, with efforts made for an increase of total retail sales of social consumer goods by more than 16%. Consumption capability should be promoted, and the implementation of the plan of doubling citizens' income should be launched to enable citizens' income increase to keep pace with economic development, labor reward increase with labor productivity. To optimize consumption environment, enhancing the construction of the market circulation network and the supporting linkage of business and trade service logistics and distribution center with community service center, fostering stereo convenience service network, and promoting the province-city-county integration quality testing system. We will develop new forms of operation in consumption, foster hot consumption items such as culture and information, expand automobile and residential housing consumption, and broaden service consumption. Supervision and management of the real estate market shall be strengthened to ensure the healthy development of the real estate market. We will foster and enlarge urban consumption market, push forward the market project of "Thousands of Villages and Townships", "household appliances going to the countryside" and " trade in old household appliances for new ones", win over the "building material going to the countryside" into the pilot areas, and accelerate the construction of the new rural modern circulation service network project.

Optimize and develop modern service industry. We will push the development of service industry toward modernization, specialization and branding, with priority given to modern logistics, financial insurance, business service, service outsourcing, innovative design, technological service, information and law service, build a batch of province-level international service outsourcing demonstration zone and industrial design platforms, and step up the pilot work of comprehensive reform of national service industry in Hengyang. The construction of the public service platforms such as logistics platforms, test and inspection shall be promoted, and the construction of the airport- and port-vicinity logistics parks and bonded zones shall be accelerated to upgrade the provincial logistics and distribution level. Such service industries as business and trade circulation, express mail service, catering and accommodation shall be promoted, and the development of emerging service industries like sports fitness, leisure and entertainment, household keeping and the old people caring should be accelerated . Xiang(Hunan) embroidery, Xiang ceramics, Xiang rice, Xiang cuisine, Xiang alcohol, and Xiang tea should be developed. We will continue to foster and strengthen the supporting industry in tourism, constructing tourist plates of Changsha, Western Huan and Southern Hunan, enhance the pilot work of national tourist city comprehensive reform in Zhangjiajie, with emphasis put on the development of the four grand brands: the red tourism with Shaoshan as the highlight, the ecologic tourism with Zhangjiajie as the leader, the historical and cultural tourism with highlights of famous persons, famous houses, famous towns, famous villages, and famous buildings, the folklore and customs tourism with Western Hunan as the center. The fostering of the new forms of operation in tourism should be quickened and tourism system be improved. The policies and measures for supporting development of the service industry should be improved.

(8) Intensifying factor guarantees to strengthen the capability of supporting development
Intensify capital guarantee. Various efforts should be made to broaden financing channels; surrounding this year's aim of accomplishing social fixed assets investment of more than 1.1 trillion yuan, the contact and linkage with central government, national ministries and commissions should be strengthened, and attempts should be made to usher more projects into the "cage" of the nation, ministries and commissions, and banks. We will give full play to the leading function of financial fund, drive social investment and lead more social capital into the fileds which would benefit the transforming of development patters, the economic restructuring and the improving of people's livelihood. We will standardize and develop the governmental financing platforms, improve and standardize guarantee system of financing, promote the cooperation of the bank and corporation, and maintain reasonable credit scale with the increase speed of all kinds of loans at around 18% this year. Attention should be paid to the cultivation of back-up resources for going public, more corporations' listing and financing at home and abroad should be push forward, and the financing scale of the enterprise bond, mid-term bill and private equity should be vigorously expanded; the function of all kinds of investment banks, investment funds and enterprise funds shall be given full play to.

Intensify land guarantee. We will carry out differentiated land use policy, enhance land regulation and control, strictly manage the use, upgrade the land use standard and use intensity, adjust and optimize land use structure and layout, revitalize reserve land in cities and towns, and make sure that the use of land should incline to such areas as new industrialization, agriculture modernization, new urbanization, "two-oriented society" and people's livelihood. Land use conservation standard shall be improved, land conservation accountability and examination shall be enhanced, land-conservation-oriented urban construction mode and industry development mode shall be promoted, and collective settlement of citizens, collective development of the industry and moderately collective running of the land shall be pushed forward. We will standardize increase-decrease linkage of urban and rural building land, and explore the method and mechanism for appreciation and profit of the sharing land in rural and urban areas. The transfer of rural collective building land and the management of the rural housing base land should be strengthened, the management, re-reclamation and treatment of the rural land be promoted, and new space for land use be broaden.

Intensify energy and resources guarantee. Efforts should be made to install new power-generators of the capacity of 1.92 million kilowatts in the province and bring in power of 2.6 million kilowatts from other provinces this year. We will improve energy reserve system and transmission passage, attach great importance to the construction of the coal passage, start the construction of power lines of Jinmen-Changsha ultrahigh voltage alternating current and Jiuquan-Hunan ultrahigh voltage current, stabilize provincial coal production capability, and increase the amount of the oil and gas into Hunan. The project of mineral resources guarantee should be implemented , mineral exploration through ministry-province linkage should be started as soon as possible, provincial mineral exploration with emphasis on the badly-needed mineral kinds such as manganese, copper, lead, zinc, wolfram, stibium and tin should be strengthened , and upgrade the capability of fine and further processing and local conversion of resources. We will rectify mining exploration order, perfect admittance and quitting and long-term benefit-oriented management mechanism of mineral resources exploration, press ahead with the exploration integration of key mining areas and key mineral kinds, and the mineral resources conservation and comprehensive utilization, solid wastes comprehensive utilization, the recycling utilization of renewable resource and water resource.

Intensify talent guarantee. We will vigorously implement the strategy of strengthening the province through talent cultivation, construct and improve the system and mechanism of governmental macro-management, effective allocation of the market, independent employment of the unit and talent, create fine environment which will benefit the growth and function display of the talent. Great efforts should be made to promote the cultivation and introduction of the talent, strengthen the talent team, optimize the talent structure, put the significance on the cultivation of professional technology talent, high-level technique talent and rural practical talent, introduce a batch of high-end talent at home and abroad, and promote the coordinated development of the talent of all categories. We will enhance service work for the talent, and advocate the whole society's respect for knowledge and the talent.

(9) Improving people's livelihood with consistent efforts and stepping up the development of social undertakings
Carry out more positive employment policy. The financial investment in employment should be increased, employment posts through multiple channels should be created, labor-intensive industry, service industry, small and macro-enterprise should be developed, and entrepreneurial fostering base with multiple layers and multiple categories should be established. Emphasis should be laid on the employment work concerning college or technical secondary school graduates, the unemployed, and the successful transfer of country labor. We will ensure prompt and effective assistance to the group with employment difficulty such as the employees among which women over 40 and men over 50, "zero-employment" household. Vocational training wii be enhanced and the quality and skill of the employee wil be promoted. We will enhance employment service, perfect human resource market of uniform urban and rural standard, construct employment public service system covering both the urban and rural areas. Harmonious labor relation should be constructed, labor law enforcement should be strengthened, labor dispute settlement mechanism should be perfected, and the rights and interests of the laborer should be guaranteed.

Improve social security system. Adhering to the principle of wide coverage, meeting basic needs with multiple layers and sustainable development, the construction of social security system should be accelerated. Great efforts should be made to the 3rd batch of new-type rural social endowment insurance pilot work, study and formulate social old-age security system for aged citizens of cities and towns with the increase of the basic pension for the enterprise retiree by per capita 140 yuan per month. Social security reward of all categories will be stably promoted. investment and running of the pension fund will be positively and properly advanced. We will intensify housing guarantee, promote welfare housing project construction such as public renting housing within large scale, step up reconstruction of shantytowns, ensure newly-added 416 000 units (households) of welfare housing and shantytowns this year will be built. The linkage of social security, social aid, and social welfare shall be strengthened,and the coordination level of social security shall be upgraded. Long-tern benefit-oriented mechanism for "double-linkage" assistance work shall be constructed. Emphasis should be laid on the advance of civil administration infrastructure construction such as disaster reduction and combat, old-age service, urban welfare institutes, rural old-age institutes, urban and rural communities. We will perfect social aid system, improve urban and rural subsistence guarantee system, upgrade guarantee standard for the supporting of urban and rural citizen receiving minimum living allowance, rural five-guarantee people, and the orphan with the basic livelihood, to ensure its level reaches the national average level. This year, average per capita supplement of urban and rural subsistence guarantee are upgraded to 168 yuan and 65 yuan respectively; per capita supporting standard per year for the individual and collective supported rural five-guaranteed are upgraded at 1500 yuan and 3000 yuan respectively; the basic living allowance for the orphan reaches 600 yuan per month per person. Minimum wage standard adjustment mechanism shall be perfected, and the linkage mechanism of social aid and guarantee standard with commodity price rise shall be established. We will provide special care to the revolutionary martyrs and servicemen, and actively develop social welfare and charity undertakings.

Stabilize the overall level of consumer price. Market and administrative measures should be applied in an all-round way to stabilize the overall level of price. We will vigorously develop production, guarantee the production and supply of main agro-products, basic living necessities and important production materials, and strengthen agro-products distribution and marketing linkage. Province governor accountability system for "rice bag" and mayor accountability system for "food basket" shall be implemented, oil and gas reserve network construction shall be improved, minimum vegetable land ownership system shall be strictly carried out, the construction of such projects as key vegetable production base, wholesale collecting and distributing center, cold storage transportation equipment shall be attached great importance to. We will enhance market supervision, make great efforts to the construction of publicity platforms of price and cost index of the main agro-products such as the crop and swine, enhance and improve the collection and administration work on price adjustment fund, intensify inspective early warning and supervision on price, sternly crack down on and punish such behaviors as the production and sale of counterfeit goods, vicious promotion, disturbance to market so as to protect the rights and interests of consumers.

Accelerate the construction of a strong province with education. The implementation of the planning and guidelines for a strong province with education should be launced. We will formulate and implement three-year action plan for pre-school education to resolve the problem of "difficult entrance to the kindergarten" in pre-school education. The balanced development of compulsory education should be deeply promoted, the popularization of senior middle school education should be accelerated, and quality-oriented education should be comprehensively pushed forward. System reform and mechanism innovation of advanced education should be step up, and high-level universities with regional characteristics should be fostered. We will step up backbone system construction for vocational education, develop continuous education, and support the development of ethnic education and special education. We will make innovations in education management and school-running system, deepen the teaching reform, and carry out key project pilot work of education reform. Teachers' virtues and behaviors shall be enhanced, and teachers' professional level shall be upgraded. International communication and cooperation on education be intensified. Education equality shall be promoted, public education resources shall be reasonably distributed, and the emphasis should incline to the rural, remote and poor, and ethnic areas. Assistance for the construction of a batch of qualified schools for compulsory education shall be provided. We will perfect the education fees mechanism in which the government takes the lead and fees are raised through multiple channels, and lead the social power to develop education. The financial aid system for students from poor families should be improved, and the right to receive equal education for children of migrant workers in cities, rural stay-at-home children, and the disable children should be practically guaranteed.

Promoting great cultural development and prosperity. We will vigorously carry forward the fine tradition of Huxiang culture, accelerate the building of the public cultural service system, and enhance the cultural soft power and comprehensive competitive capability in an all-round way. We will press ahead with the constructions of core socialist values and spiritual civilization, conduct patriotic education activities like the activity for commemoration of the 100th anniversary of the Revolution of 1911(Xinhai Revolution), intensify the cultivation of social morality, professional ethics and family virtues, attach great importance to the ideological and ethical construction of juveniles and college students, and vigorously push forward the construction of civilized cities, civilized villages and towns, and civilized occupations. We will speed up the construction of projects under renovation and expansion like Hunan Provincial Museum, provincial archive public service center, libraries, and art galleries, accelerate the development of cultural projects which benefits the people, including the project to extend radio and TV coverage to every village, the project for sharing cultural information and resources, the project to show movies in the countryside, the project to develop multi-use cultural centers and grass-roots cultural sits for communities, towns and townships, and the project to set up book houses in rural areas, and conduct the activity of "Three Xiang(Hunan) Reading Month". We will consolidate and promote the traditional cultural industries, such as radios and TVs and publications, speed up the development of cultural creative industries including creative design, digital media, and cartoon games, develop wireless broadcast and television network of the next generation, foster and strengthen cultural industrial groups like Mango Media Co., Ltd., Central South Publishing & Media Group and Titan Media, and establish provincial culture and art industry groups; we will optimize the distribution of cultural industries and promote the constructions of the National Digital Publishing Base of Central South China, Huaqiang Cultural, Scientific and Technological Base in Zhuzhou, Zhangjiajie International Movie and Television Culture Base, and Fenghuang Town in Misty Rain. We will deepen the reform of non-profit cultural public institutions, and push forward the transition and restructuring of cultural profit-making institutions. We need to speed up the work of local chronicles, strengthen the rescue and protection of tangible and intangible cultural heritage, initiate the construction of Laosi Town Site in Yongshun and Tongguan Kiln Archaeological Park in Changsha, and carry out the external propaganda and cultural exchange. We should vigorously develop philosophy and social sciences, standardize the management of cultural market, purify social environment and protect the physical and mental health of young people.

Vigorously promoting public health,sports and other social undertakings; we will firmly promote five major reforms in medical and health system. We will strengthen and improve the new-type rural cooperative medical system and push forward the effective linkage between such a system and medical relief system. We will strengthen the construction of public health service system, perfect the specialized health service network of disease control, health education, women and children health care, mental health, emergency treatment, blood collection and supply, and sanitary supervision. We will actively prevent and control major infectious diseases, chronic diseases, occupational diseases, endemic diseases and parasitic diseases. We will strengthen and improve the basic medical insurance system covering the both rural and urban areas and comprehensively implement the national basic drug system in medical and health institutions at the grassroots level. We will make great efforts to construct supervisory ability of food and drug, and guarantee the food and drug safety. We will work tirelessly to build the urban and rural medical service system, incline the focus towards new medical and health resources to urban and rural communities, and encourage general practitioners to provide long-term service at the grassroots level areas. We will steadily promote reforms in public hospital, and encourage medical institutions to be run by social capital in order to satisfy diversified medical and health needs. We will adhere to both traditional Chinese medicine and Western medicine, and support and develop Chinese medicine. We will do everything possible to stabilize the low birth rate and improve quality of the new born to balance population development. We will develop and support the undertakings concerning women, children, the disabled and the Red Cross. We will strengthen the building of sports facilities in both rural and urban communities, enrich sports activities of the mass and enhance the overall level of competitive sports.

Persisting in making tangible efforts for the people. Last year, totally 28 items of tangible efforts for the people were completed, among which 21 ones were overfulfilled. This year, nine aspects and 32 items for the betterment of the people should be attached great importance to. In terms of infrastructure facilities in rural areas, 2, 000 kilometers of county roads will be renovated, and 8,000 kilometers of concrete (asphalt) roads will be completed; 3 million rural residents will be provided with safe drinking water, and 376 problematic and dangerous reservoirs will be reinforced; telephone lines will reach 800 new unincorporated villages and 1,000 new incorporated villages will gain internet broadband access; 2,000 incorporated villages will be newly constructed or renovated equipped with power grids; 633 post offices at villages and towns will be established; 12, 000 new methane tanks will be built in rural areas, and 100 provincial demonstration ones of peasant professional cooperatives will be established. In terms of schooling, 500 qualified compulsory education schools, 14 special education central schools at the city and prefecture levels and 200 public kindergartens in rural areas will be set up. In terms of employment, 600,000 jobs will be created for urban residents; 600,000 rural labor will be successfully transferred; and 662, 000 peasants will get access to the trainings of skills. In terms of medical treatment, 73 counties (county-level cities, county-level autonomous regions) will get the medical insurance and outpatient treatment for citizens with over-all planning; in these areas, the average compensation rate of hospital cost will be over 60% within the applicable scope of the new-type rural cooperative medical system; the expenditure for primary medical treatment for five-guaranteed people will be free, when they are hospitalized in the designated medical institutions of new rural CMS. In terms of housing, 40,000 dilapidated houses in rural areas as well as 20,000 dilapidated and old houses of state-owned forest farms will be reconstructed; 86, 000 low-rented housings will be newly built; and 5, 000 cameras with electronic system for prevention and control will be installed. In terms of retirement pension, 10 million people will be involved in the new-type rural pension insurance; new-type rural pilot insurance will be carried out in all key counties with immigrants; 150 home for the aged will be expanded or renovated. In terms of relief, the standard of relief for the rural and urban residents enjoying subsistence allowances and that of support of rural five-guarantee people will be enhanced, and 600,000 impoverished peasants will be offered assistance. In terms of the environmental protection, the harmless disposal rate of rubbish in urban areas will reach 56%; 100 demonstration villages for rural cleaning projects will be established; offices for prevention of geological disasters will be established in 53 areas. In terms of cultural service, 1,058 multi-use cultural centers for towns and townships and 8,000 book houses in rural areas will be set up.

Promoting national defense mobilization and improving the quality of reserve forces in an all-round way. We will improve the national defense mobilization system and its operating mechanism, and positively push forward the transform of generating mode of the national defense mobilization capability. We will implement the preferential treatment policy for servicemen and properly deal with the placement work for transferred army cadres and demobilized servicemen. We will extensively carry out national defense education and "Double Support" activities (i.e., the government and the people should support the army and give preferential treatment to the families of servicemen and martyrs, and the army should support the government and cherish the people) in order to promote cooperation between the military and the local people.

(10) Fulfilling duties responsibly, serving the people faithfully, and constructing law-based Hunan
Strengthening the construction of socialist political civilization. We must integrate organically the adherence to the Party's leadership, the position of people as masters of the county and governing the country in accordance with the law. We will develop socialist democracy, uphold and improve the system of People's Congress, the system of multi-party cooperation and political consultation under the leadership of the CPC, and the system of regional ethnic autonomy, as well as consolidate and expand the most comprehensive patriotic united front. We will display the roles of people's organizations including the labour union, Communist Youth League, and Women's Federation. We shall strengthen the construction of grassroots democracy, uphold and improve the publicity of government affairs, factory affairs and village (community) affairs, and guarantee that people exercise the rights to know, to participate, to be heard and to oversee in accordance with the law. We will implement the fundamental strategy of governing the province according to law in an all-round way, consciously accept legal and work oversight of People's Congress, and ensure that resolutions, decisions and oversight of Hunan Provincial People's Congress and its Standing Committee will be put into effect; we will voluntarily accept the democratic supervision from the Chinese People's Consultative Conference (CPPCC), public opinion supervision from the news media and all sectors of the society, as well as supervision from the broad masses of the people. We must do the work concerning ethnic, religious and overseas Chinese affairs conscientiously. We will consolidate the guarantee of human rights and develop the cause of human rights.

Creating a pleasant social environment for living and working. We will firmly safeguard the country's security and interests. We will make great efforts in production safety, keep a strict hand over safety access, solidify the base of production safety, and guard against and reduce the occurrence of major accidents, in order to ensure that the situation of production safety will be improved continuously. We will enhance the production safety, press ahead with the construction of "firewall" project of fire control safety, improve the prevention and early-warning system of disasters caused by accidents, public health, food security, social security events and all kinds of natural disasters, and promote the construction of the integrated rank of emergency rescue and treatment. We will strengthen all facets of public security, improve the public security prevention-control system, and resolutely crack down on criminal offences and violent crimes of all sorts. We will spare no effort to prevent and publish evil cults. We will promote the construction of the community policing in both urban and rural areas, the prevention and control by the masses and grassroots organizations of public security and meditation in rural areas, as well as improve the ability of law enforcement guarantee. We will perfect the mechanism of integration of meditation by the people, the administration and justice as well as the working mechanism of risk evaluation of social stability. We will strengthen the legal aid and put forth more efforts to the building of legal service team. We will push forward the legal popularization of "Sixth Five-Year Plan". We should persist in the leadership of mass work in the complaint reporting works, and improve maintenance mechanism of the interests of the masses under the guidance of the Party and the government, so that various contradictions will be solved effectively. We should promote the community construction in both urban and rural areas, improve management and service of the migrant population conscientiously, and intensify the management and service work concerning the help and education of special population.

Fellow deputies, in order to do our work well in all aspects and complete goals and tasks set forth in the "Twelfth Five-Year Plan", we must strive to build a satisfactory government for the people.

Constructing a service-oriented government, and adhering to the people-oriented principle and to exercise governance for the people. We should accelerate the transformation of government functions, and vigorously promote the separation of the functions of the government from those of enterprises, state assets management authorities, public institutions and market-based intermediaries. We will deepen the reform of government organizations, further optimize the structure of the government, administrative levels and functions and duties, and accelerate the construction of the administrative system which matches powers with responsibilities, divides powers in a rational way, fosters scientific decision-making and ensures smooth enforcement and effective oversight. We will further downsize and standardize administrative examination and approval, rationally define the administrative examination and approval items, be earnest in resolving issues concerning overlapping AEA functions, divorce between power and responsibility and examination and approval involving various government departments at the same level. We will promote the transparency in administrative affairs with focus on the disclosure of information including financial budget, the allocation of public resources, the approval and implementation of major construction projects, the social non-profit undertakings construction. We will strengthen and improve social management, perfect the system of management and service at grassroots level, give full play to the mass and social organizations for the promotion of a harmonious and vibrant society. We will actively push forward the establishment of electronic government affairs and government affairs service center, set up and improve the electronic government affairs system and electronic surveillance system interconnecting governments at the provincial, municipal and county levels, gradually carry out office online, service online and oversight online, attach great importance to the cyber public opinion, and set up the internet information service platform of governments at all levels and internet service platform for people's convenience.

Building a law-based government, and standardizing administrative law enforcement. We will strengthen legislative work in governments, and ensure that reasonable demand and legal interests of the people will be fully reflected. We should persist in making decisions in a scientific, democratic and legal manner, bring into full play decision-making consultative institutions including expert and academician advisory committees of provincial government and advisory offices, and establish and improve the evaluation, track and feedback system of major decision-making. We will implement thoroughly regulations on administrative procedures and measures of standardizing administrative discretionary rights, accelerate the publication of "Regulations on Service of Hunan Provincial People's Government", and exercise power strictly in accordance with legal procedures, provisions and liabilities. We will make great efforts into the proclamation of the auditing results, rigidly implement responsibility system of administrative enforcement and fault accountability system, and enhance the overall quality of law enforcement personnel.

Constructing a responsible government, and resolving problems of being vacancy, overrunning and inadequacy concerning administrative responsibility. We must heighten all the governments' responsibilities of serving the development; all work must abide by and serve the development at any time, and all positions must take the promotion of development as primary responsibility; the work concerning the promotion of development must be done without the slightest slackening. We will intensify the government performance evaluation and administrative accountability, set up a scientific and rational index system of government performance evaluation and evaluation mechanism, improve the inspection system of the implementation of major decisions and dispositions and special supervision system, implement post responsibility system, liability system about the first asking, service commitment system and the system of settlement within the limited time, and carry out the activity of the "Implementation Year of Performance System".

Constructing a clean government and adhering to the industrious and frugal way all the time. We will make great efforts into the development of civil servants, fulfill the concept of exercising power for the people, showing concern for them and working for their interests consciously. We will enhance and improve the work style of cadres, being dignified in personality, diligent in work, clean in duties, conscientious in serving the people, persist in the mutual understanding, concession, and help to create a favorable environment of work and starting an undertaking. We will push forward the construction of the system of corruption punishment and prevention, and strictly implement the responsibility system of the construction of a clean government. We must stick to economy, always be frugal and hardworking, reduce administrative cost, and strictly control the normal expenditure, going aboard, investigation, training, and spending on celebrations, forums, attracting foreign investment, festivals and conferences, and purchase of cars. We will care for and love cadres at the grass-roots level, and improve the grass-roots working environment. We will continually promote and strengthen the mass work in the new situation, and form favorable atmosphere in which everyone' thoughts and efforts are directed towards one goal.

Fellow deputies, standing at a new historic starting point, we have embarked on a new journey for scientific development and better life of people and stronger province. Let us rally more closely around the Central Committee of CPC with Hu Jintao as the General Secretary, hold high the great banner of socialism with Chinese characteristics; under the leadership of the CPC Hunan Provincial Committee, let us emancipate the mind, seek truth from the facts, keep pace with the times, be innovative and forge ahead in a pioneering spirit, make arduous and joint efforts to welcome the 90th anniversary of the Communist Party of China and write a brilliant opening chapter of the "Twelfth Five-Year Plan" .